Which of the following is a true statement?
a. The concept of potential output might be thought of as the maximum sustainable output of the economy under normal circumstances.
b. Actual output cannot exceed potential output, even during a boom.
c. When the actual rate of unemployment exceeds the natural rate, the actual output of the economy will rise above its potential.
d. Potential output represents the absolute maximum level of production.
A
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If the long-run average total cost curve for a firm is horizontal in a relevant range of production, then it indicates that there
A. are diseconomies of scale. B. are economies of scale. C. isn't a minimum efficiency scale. D. are constant returns to scale.
At higher income levels the interest rate must be lower to achieve money market equilibrium
Indicate whether the statement is true or false
Empirical studies show that entry into markets increases both price and quantity of goods supplied.
Answer the following statement true (T) or false (F)
In the mid 90's, over _____% of all black families are headed by women.
A. 30 B. 45 C. 60 D. 75